CONVERTIBLE PROMISSORY NOTES

12 Months Ended

Jun. 30, 2017

CONVERTIBLE PROMISSORY NOTES [Text Block]

NOTE 7 – CONVERTIBLE PROMISSORY NOTES

Summary of convertible promissory notes at June 30, 2017 and 2016 is as follows:

							Accretion
							of								Transfer
		June 30,			Principal		Issuance		Total						(Loan			June 30,
		2016			Issued		Cost		Converted			Repaid			Extinguished)			2017

February 13, 2013	$	21,908		$	-	$	-	$	-		$	(10,954	)	$	-		$	10,954

July 22, 2014		185,315			-		-		(162,789	)		-			(15,304	)		7,222

August 22, 2014		15,768			-		-		-			-			(15,768	)		-

February 6, 2015		7,150			-		-		-			-			-			7,150

March 9, 2015		10,220													(10,220	)		-

February 24, 2015		76,239			-		-		-			-			(76,239	)		-

August 3, 2015		36,000			-		-		(36,000	)		-			-			-

September 9, 2015		30,000			-		-		-			-			-			30,000

September 30, 2015		20,800			-		-		-			-			(20,800	)		-

November 6, 2015		12,000			-		-		(12,000	)		-			-			-

December 1, 2015		36,000			-		-		(18,000	)		-			(18,000	)		-

December 3, 2015		17,000			-		-		-			-			(17,000	)		-

January 27, 2016		29,750			-		-		(24,750	)		-			(5,000	)		-

February 1, 2016		49,197			-		-		-			-			(49,197	)		-

March 1, 2016		13,200			-		-		(13,200	)		-			-			-

March 24, 2016		12,100			-		-		(12,100	)		-			-			-

March 28, 2016		42,986			-		-		(2,216	)		-			(40,770	)		-

April 19, 2016		197,067			-		-		-			-			(197,067	)		-

May 16, 2016		30,250			-		-		(30,250	)		-			-			-

August 12, 2016		-			40,000		5,712		-			-			-			45,712

September 7, 2016		-			100,000		16,000		(169,920	)		-			53,920			-

September 8, 2016		-			25,000		2,201		(120,000	)		-			120,000			27,201

September 9, 2016		-			125,000		14,810		-			-			-			139,810

September 9, 2016		-			-		-		(87,772	)		-			108,697			20,925

September 15, 2016		-			232,000		21,059		(253,059	)					-			-

September 16, 2016		-			-		-		-			(232,500	)		232,500			-

September 19, 2016		-			-		-		(233,000	)					1,398,000			1,165,000

September 27, 2016		-			110,000		11,655		-			-			-			121,655

October 10, 2016		-			-		6,677		-			-			93,063			99,740

October 19, 2016		-			-		-		-			(35,000	)		35,000			-

October 27, 2016		-			40,000		5,365		-			-			-			45,365

October 31, 2016		-			147,000		10,594		-			-			-			157,594

November 14, 2016		-			25,000		3,569		-			-			-			28,569

November 22, 2016		-			25,000		2,693		-			-			-			27,693

November 30, 2016		-			87,000		7,215		-			-			-			94,215

December 23, 2016		-			37,500		3,721		-			-			-			41,221

December 29, 2016		-			82,000		4,432		-			-			-			86,432

January 17, 2017		-			42,500		3,679		-			-			-			46,179

January 25, 2017		-			100,000		12,735		-			-			-			112,735

January 26, 2017		-			68,500		12,207		-			-			-			80,707

January 27, 2017		-			100,000		6,680		-			-			-			106,680

February 3, 2017		-			68,500		4,723		-			-			-			73,223

March 1, 2017		-			316,800		14,954		-			-			-			331,754

March 13, 2017		-			75,000		3,074		-			-			-			78,074

March 20, 2017		-			198,800		7,237		-			-			-			206,037

April 4, 2017		-			123,800		4,158		-			-			-			127,958

May 2, 2017		-			25,000		763		-			-			-			25,763

May 5, 2017		-			25,000		755		-			-			-			25,755

May 15, 2017		-			300,000		8,729		-			-			-			308,729

May 17, 2017		-			300,000		9,655		-			-			-			309,655

June 8, 2017		-			75,000		1,985		-			-			-			76,985

June 8, 2017		-			75,000		1,985		-			-			-			76,985

June 30, 2017		-			100,063		-		-			-			-			100,063


	$	842,950		$	3,069,463	$	209,022	$	(1,175,056	)	$	(278,454	)	$	1,575,815		$	4,243,740

Less: Unamortized debt discount	$	(223,181	)		-		-		-			-			-			(1,402,631	)

Total note payable, net of debt discount	$	619,769			-		-		-			-			-		$	2,841,109

Current portion	$	619,769			-		-		-			-			-		$	2,841,109

Long term portion	$	-			-		-		-			-			-		$	-

On August 12, 2016 Company issued an aggregate of $46,750 Convertible Promissory Notes with an issuance discount of $4,250 and $2,500 for legal fees that matures on August 12, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 65% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $64,723 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		371.21%
Risk free rate:		0.56%

The initial fair values of the embedded debt derivative $46,750 was allocated as a debt discount up to the proceeds of the note with the remainder $17,973 was charged to current period operations as interest expense.

On September 7, 2016 Company issued an aggregate of $116,000 Convertible Promissory Notes with an issuance cost of $16,000 that matures on September 7, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $122,726 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		371.21%
Risk free rate:		0.57%

The initial fair values of the embedded debt derivative $116,000 was allocated as a debt discount up to the proceeds of the note with the remainder $6,726 was charged to current period operations as interest expense.

On September 7, 2016 Company had transferred an aggregate of $50,000 plus accrued interest of $3,919 in Convertible Promissory Notes from one debt holder to another. The transfer was treated as a modification of the Convertible Promissory Notes. The Convertible Promissory Notes matures on September 7, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

On September 7, 2016 Company issued an aggregate of $32,500 Convertible Promissory Notes that matures on September 16, 2017. These Convertible Promissory Notes were issued as a part of settlement agreement for maturing in total $37,800 of Convertible Promissory Notes and $2,827 of accrued interest. The Company also agreed to pay $50,000 in cash which is included under non-convertible promissory notes as described in Note 6.

These notes bear 8% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 65% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $53,765 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		371.21%
Risk free rate:		0.57%

The initial fair values of the embedded debt derivative $23,816 was allocated as a debt discount towards the proceeds of the note with the remainder $29,949 was charged to current period operations as interest expense.

On September 7, 2016 Company issued an aggregate of $75,000 Convertible Promissory Notes that matures on September 16, 2017. These Convertible Promissory Notes were issued as a part of settlement agreement for maturing in total $99,239 of Convertible Promissory Notes and $14,925 of accrued interest. The Company also agreed to pay $160,000 in cash which is included under with the non-convertible promissory notes as described in Note 6.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $121,129 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		371.21%
Risk free rate:		0.57%

The initial fair values of the embedded debt derivative $54,960 was allocated as a debt discount towards the proceeds of the note with the remainder $66,170 was charged to current period operations as interest expense

On September 8, 2016 Company had transferred an aggregate of $15,304 plus accrued interest of $104,696 in Convertible Promissory Notes from one debt holder to another. The transfer was treated as a modification of the Convertible Promissory Notes. The Convertible Promissory Notes matures on September 8, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $90,498 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		241.19%
Risk free rate:		. 85%

The initial fair values of the embedded debt derivative $78,957 was allocated as a debt discount of the note with the remainder $11,542 was charged to current period operations as interest expense.

On September 8, 2016 Company issued an aggregate of $27,778 Convertible Promissory Notes with issuance cost of $2,778 that matures on September 8, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $59,408 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		371.21%
Risk free rate:		0.57%

The initial fair values of the embedded debt derivative $27,778 was allocated as a debt discount up to the proceeds of the note with the remainder $31,630 was charged to current period operations as interest expense.

On September 9, 2016 Company issued an aggregate of $144,100 Convertible Promissory Notes with issuance cost of $19,100 that matures on September 9, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 65% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $47,089 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		371.21%
Risk free rate:		0.58%

The initial fair values of the embedded debt derivative $47,089 was allocated as a debt discount towards the proceeds of the note with the remainder $0.00 was charged to current period operations as interest expense.

On September 15, 2016 Company issued an aggregate of $257,778 Convertible Promissory Notes with issuance cost of $25,778 that matures on September 15, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $88,122 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		371.21%
Risk free rate:		0.60%

The initial fair values of the embedded debt derivative $88,122 was allocated as a debt discount towards the proceeds of the note with the remainder $0.00 was charged to current period operations as interest expense.

On September 16, 2016 Company issued an aggregate of $25,000 Convertible Promissory Notes that matures on September 16, 2017. These Convertible Promissory Notes were issued as a part of settlement agreement for maturing Convertible Promissory Notes and accrued interest. The Company also agreed to pay $50,000 in cash which is included under the non-convertible promissory notes as described in Note 6.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $36,510 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		371.21%
Risk free rate:		0.61%

The initial fair values of the embedded debt derivative $13,462 was allocated as a debt discount up to the proceeds of the note with the remainder $23,048 was charged to current period operations as interest expense.

On September 16, 2016 Company issued an aggregate of $100,000 Convertible Promissory Notes that matures on September 16, 2017. These Convertible Promissory Notes were issued as a part of settlement agreement for maturing in total $49,197 of Convertible Promissory Notes, $2,426 of accrued interest and warrants. The Company also agreed to pay $50,000 in cash which is included under in conjunctions with the non-convertible promissory notes as described in Note 6.

The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		371.21%
Risk free rate:		0.61%

The initial fair values of the embedded debt derivative $53,846 was allocated as a debt discount towards the proceeds of the note with the remainder $21,568 was charged to current period operations as interest expense.

On September 19, 2016 Company issued an aggregate of $708,000 Convertible Promissory Notes that matures on September 19, 2017. These Convertible Promissory Notes were issued as a part of settlement agreement for cancellation of outstanding warrants.

These notes bear 8% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 60% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $82,535 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		371.21%
Risk free rate:		0.60%

The initial fair values of the embedded debt derivative $82,535 was allocated as a debt discount up to the proceeds of the note with the remainder $0.00 was charged to current period operations as interest expense.

On September 19, 2016 Company issued an aggregate of $550,000 Convertible Promissory Notes that matures on September 19, 2017. These Convertible Promissory Notes were issued as a part of settlement agreement for cancellation of outstanding Warrants.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $82,361 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		371.21%
Risk free rate:		0.60%

The initial fair values of the embedded debt derivative $82,361 was allocated as a debt discount up to the proceeds of the note with the remainder $0.00 was charged to current period operations as interest expense.

On September 19, 2016 Company issued an aggregate of $140,000 Convertible Promissory Notes that matures on September 19, 2017. These Convertible Promissory Notes were issued as a part of settlement agreement for cancellation of outstanding Warrants.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $82,361 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		371.21%
Risk free rate:		0.60%

On September 27, 2016 Company issued an aggregate of $64,900 Convertible Promissory Notes with issuance cost of $9,900 that matures on September 27, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 65% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $23,828 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		371.21%
Risk free rate:		0.58%

The initial fair values of the embedded debt derivative $23,828 was allocated as a debt discount wards the proceeds of the note with the remainder $0.00 was charged to current period operations as interest expense.

On September 29, 2016 Company issued an aggregate of $61,112 Convertible Promissory Notes with issuance cost of $6,112 that matures on September 29, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $63,730 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		371.21%
Risk free rate:		0.59%

The initial fair values of the embedded debt derivative $61,112 was allocated as a debt discount up to the proceeds of the note with the remainder $2,618 was charged to current period operations as interest expense.

As a part of settlement agreement for maturing in total $15,768 of Convertible Promissory Notes, $4,505 of accrued interest and warrants valuing $120,500, the Company agreed to pay $150,000 in cash which is included under in conjunctions with the non-convertible promissory notes as described in Note 6.

On October 10, 2016 Company issued an aggregate of $102,369 Convertible Promissory Notes with no issuance costs that matures on October 10, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $74,334 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		241.19%
Risk free rate:		0.85%

The initial fair values of the embedded debt derivative $74,334 was allocated as a debt discount and no amounts allocated to interest expense.

On October 19, 2016 Company issued an aggregate of $35,000 Convertible Promissory Notes with no issuance costs that matures on October 19, 2017. These notes bear 8% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 65% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $44,093 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		241.19%
Risk free rate:		0.85%

The initial fair values of the embedded debt derivative $18,846 was allocated as a debt discount of the note with the remainder $25,247 was charged to current period operations as interest expense.

On October 27, 2016 Company issued an aggregate of $48,400 Convertible Promissory Notes with issuance cost of $8,400 that matures on October 27, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $27,583 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		241,19%
Risk free rate:		0.85%

The initial fair values of the embedded debt derivative $27,583 was allocated as a debt discount up to the proceeds of the note and no amounts allocated to interest expense.

On October 31, 2016 Company issued an aggregate of $163,334 Convertible Promissory Notes with issuance cost of $16,334 that matures on October 31, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to lesser of $0.005 or 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $63,303 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		241.19%
Risk free rate:		0.85%

The initial fair values of the embedded debt derivative $63,303 was allocated as a debt discount and no amounts allocated to interest expense.

On November 14, 2016 Company issued an aggregate of $31,111 Convertible Promissory Notes with issuance cost of $6,111 that matures on November 14, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to lesser of $0.005 or 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $47,670 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		241.19%
Risk free rate:		0.85%

The initial fair values of the embedded debt derivative $25,000 was allocated as a debt discount of the note with the remainder $22,670 was charged to current period operations as interest expense.

On November 22, 2016 Company issued an aggregate of $29,700 Convertible Promissory Notes with issuance cost of $4,700 that matures on November 22, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $19,950 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		241.19%
Risk free rate:		0.59%

The initial fair values of the embedded debt derivative $19,950 was allocated as a debt discount.

On November 30, 2016 Company issued an aggregate of $100,000 Convertible Promissory Notes with issuance cost of $13,000 that matures on November 30, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to lesser of $0.005 or 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $63,665 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		241.19%
Risk free rate:		0.59%

The initial fair values of the embedded debt derivative $63,665 was allocated as a debt discount and no amounts allocated to interest expense.

On December 23, 2016 Company issued an aggregate of $45,100 Convertible Promissory Notes with issuance cost of $7,600 that matures on December 23, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $22,112 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		241.19%
Risk free rate:		0.85%

The initial fair values of the embedded debt derivative $22,112 was allocated as a debt discount.

On December 29, 2016 Company issued an aggregate of $91,111 Convertible Promissory Notes with issuance cost of $9,111 that matures on December 29, 2017. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to lesser of $0.005 or 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet* date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $68,524 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		241.19%
Risk free rate:		0.85%

The initial fair values of the embedded debt derivative $68,524 was allocated as a debt discount up to the proceeds of the note and no amounts allocated to interest expense.

On January 17, 2017 Company issued an aggregate of $51,150 Convertible Promissory Notes with issuance cost of $8,650 that matures on January 17, 2018. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $218,566 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		284.38%
Risk free rate:		1.03%

The initial fair values of the embedded debt derivative $42,500 was allocated as a debt discount up to the proceeds of the note with the remainder $176,066 charged to current period operations as interest expense.

On January 25, 2017 Company issued an aggregate of $132,222 Convertible Promissory Notes with issuance cost of $32,222 that matures on January 25, 2018. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to lesser of $0.005 or 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $594,279 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		284.38%
Risk free rate:		1.03%

The initial fair values of the embedded debt derivative $100,000 was allocated as a debt discount up to the proceeds of the note with the remainder $494,279 charged to current period operations as interest expense.

On January 26, 2017 Company issued an aggregate of $99,833 Convertible Promissory Notes with issuance cost of $31,333 that matures on January 26, 2018. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to lesser of $0.005 or 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $552,754 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		284.38%
Risk free rate:		1.03%

The initial fair values of the embedded debt derivative $68,500 was allocated as a debt discount up to the proceeds of the note with the remainder $484,254 charged to current period operations as interest expense.

On January 27, 2017 Company issued an aggregate of $116,600 Convertible Promissory Notes with issuance cost of $16,600 that matures on January 27, 2018. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $269,317 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		284.38%
Risk free rate:		1.03%

The initial fair values of the embedded debt derivative $100,000 was allocated as a debt discount up to the proceeds of the note with the remainder $169,317 charged to current period operations as interest expense.

On February 3, 2017 Company issued an aggregate of $80,850 Convertible Promissory Notes with issuance cost of $12,350 that matures on February 3, 2018. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $241,447 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		284.38%
Risk free rate:		1.03%

The initial fair values of the embedded debt derivative $68,500 was allocated as a debt discount up to the proceeds of the note with the remainder $172,947 charged to current period operations as interest expense.

On March 1, 2017 Company issued an aggregate of $181,209 Convertible Promissory Notes with issuance cost of $22,809 that matures on March 1, 2018. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $130,829 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		284.38%
Risk free rate:		1.03%

The initial fair values of the embedded debt derivative $130,829 was allocated as a debt discount up to the proceeds of the note and no amounts allocated to interest expense.

On March 1, 2017 Company issued an aggregate of $183,056 Convertible Promissory Notes with issuance cost of $24,656 that matures on March 1, 2018. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to lesser of $0.005 or 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $261,920 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		284.38%
Risk free rate:		1.03%

The initial fair values of the embedded debt derivative $158,400 was allocated as a debt discount up to the proceeds of the note with the remainder $103,520 charged to current period operations as interest expense.

On March 13, 2017 Company issued an aggregate of $85,800 Convertible Promissory Notes with issuance cost of $10,800 that matures on March 13, 2018. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to lesser of $0.005 or 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $153,245 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		284.38%
Risk free rate:		1.03%

The initial fair values of the embedded debt derivative $75,000 was allocated as a debt discount up to the proceeds of the note with the remainder $78,245 charged to current period operations as interest expense.

On March 20, 2017 Company issued an aggregate of $85,800 Convertible Promissory Notes with issuance cost of $10,800 that matures on March 20, 2018. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $119,337 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		284.38%
Risk free rate:		1.03%

The initial fair values of the embedded debt derivative $75,000 was allocated as a debt discount up to the proceeds of the note with the remainder $44,337 charged to current period operations as interest expense.

On March 28, 2017 Company issued an aggregate of $141,680 Convertible Promissory Notes with issuance cost of $17,880 that matures on March 28, 2018. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to lesser of $0.005 or 50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $226,203 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		284.38%
Risk free rate:		1.03%

The initial fair values of the embedded debt derivative $123,800 was allocated as a debt discount up to the proceeds of the note with the remainder $102,403 charged to current period operations as interest expense.

On April 4, 2017, the Company issued an aggregate of $141,627 Convertible Secured Redeemable Note with issuance cost of $17,827 that matures on April 4, 2018. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $94,779 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		261.15%
Risk free rate:		1.03%

The initial fair values of the embedded debt derivative $94,779 was allocated as a debt discount.

On May 2, 2017, the Company issued an aggregate of $28,600 Convertible Secured Redeemable Note with issuance cost of $3,600 that matures on May 2, 2018. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $58,674 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		261.15%
Risk free rate:		1.03%

The initial fair values of the embedded debt derivative $25,000 was allocated as a debt discount up to the proceeds of the note with the remainder $33,674 charged to current period operations as interest expense.

On May 5, 2017, the Company issued an aggregate of $28,600 Convertible Secured Redeemable Note with issuance cost of $3,600 that matures on May 5, 2018. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $67,746 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		261.15%
Risk free rate:		1.03%

The initial fair values of the embedded debt derivative $25,000 was allocated as a debt discount up to the proceeds of the note with the remainder $42,746 charged to current period operations as interest expense.

On May 17, 2017, the Company issued an aggregate of $687,850 Convertible Promissory Notes with issuance cost of $87,850 that mature on May 15, 2018. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at the lesser of $0.005 per share or at a price equal to 50% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $242,348 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		261.15%
Risk free rate:		1.03%

The initial fair values of the embedded debt derivative $242,348 was allocated as a debt discount.

On June 8, 2017, the Company issued an aggregate of $171,600 Convertible Promissory Notes that with issuance cost of $21,600 that mature on June 8, 2018. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $218,694 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		261.15%
Risk free rate:		1.03%

The initial fair values of the embedded debt derivative $144,720 was allocated as a debt discount with the remainder $73,974 charged to current period operations as interest expense.

On June 30, 2017, the Company issued an aggregate of $114,400 Convertible Promissory Notes with issuance cost of $14,400 that mature on May 18, 2018. These notes bear 10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to 50% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.

The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $160,829 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:		0.00%
Volatility		261.15%
Risk free rate:		1.03%

The initial fair values of the embedded debt derivative $100,000 was allocated as a debt discount up to the proceeds of the note with the remainder $60,829 charged to current period operations as interest expense.

The modification of the Notes was evaluated under FASB Accounting Standards Codification (“ASC”) Topic No. 470-50-40, “Debt Modification and Extinguishments”. Therefore, according to the guidance, the instruments were determined to be substantially different, and the transaction qualified for extinguishment accounting. During the year ended June 30, 2017, $1,527,301 was recorded as loss on extinguishment of debt due to settlement agreement with note holders. The $1,527,301 consists of net increase in principal of convertible promissory notes of $1,417,101 (net of extinguished interests of $158,778), increase in principal of non-convertible promissory notes of $520,000, extinguished derivative liabilities for debt and warrants with fair values on date of conversion was $298,728 and $111,072 respectively.

On June 28, 2017, the Company entered into a Note and Warrant Repayment and Repurchase Agreement whereby the Company agreed to repurchase 1,011 warrants and settle an outstanding convertible note payable from the holder totaling $21,908 for two payments to the holder of $100,000. The first $100,000 payment was made on June 30, 2017 resulting in the repurchase of 506 warrants and a $10,954 reduction of the note. The portion of the payment allocated to the warrant repurchase ($89,046) was recorded as a loss on settlement and is included in interest expense for the year ended June 30, 2017. The second and final $100,000 payment was made to the holder on July 3, 2017, resulting in the repurchase of the remaining 505 warrants and settlement of the remaining balance of the note of $10,954.

During the year ended June 30, 2017 and 2016 the Company amortized the debt discount on all the notes of $1,879,437 and $515,942, respectively to operations as expense including $209,023 and $0, respectively, for accretion expenses.

During the year ended June 30, 2017, $278,454 cash was paid to note holders and the change in derivative liability on date of payment of such notes were charged to gain or loss on change in fair value of derivative liability under statement of operation. No cash payments were made to note holders for the year ended June 30, 2016

Derivative Liability - Debt

The fair value of the described embedded derivative on all debt was valued at $3,386,252 and $1,162,058 at June 30, 2017 and 2016, respectively, which was determined using the Black Scholes Model with the following assumptions:

	June 30, 2017	June 30, 2016
Dividend yield:	0%	0%
Volatility	247.5 – 284.4%	346.6 – 453.3%
Risk free rate:	1.03 – 1.89%	0.39%- 0.66%

The Company recorded change in fair value of the derivative liability on debt to market resulting in non-cash, non-operating gain of $948,842 and $743,224 for the year ended June 30, 2017 and 2016, respectively.

During the year ended June 30, 2017 and 2016 the Company issued 2,339,379,237 and 109,612,491 shares of the Company’s common stock in settlement of $1,266,819 and $476,901, respectively, of convertible note and interest.

During the year ended June 30, 2017 and 2016 the Company reclassed the derivative liability of $1,818,596 and $768,175, respectively, to additional paid in capital on conversion of convertible note.

The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities as of June 30, 2017 and 2016:

		Derivative
		Liability (convertible
		promissory notes)
Balance, June 30, 2015	$	1,646,448
Initial fair value at note issuances		1,027,009
Fair value of liability at note conversion		(768,175	)
Mark-to-market at June 30, 2016		(743,224	)
Balance, June 30, 2016	$	1,162,058
Initial fair value at note issuances		5,290,359
Fair value of liability at note conversion		(1,818,596	)
Extinguishment of derivative liability		(298,728	)
Mark-to-market at June 30, 2017		(948,842	)

Balance, June 30, 2017	$	3,386,251
Net gain for the period included in earnings relating to the liabilities held at June 30, 2017	$	948,842

Derivative Liability- Warrants

Along with the promissory notes, the Company issued warrants that bear a cashless exercise provision. The warrants also include anti-dilution protection with respect to lower priced issuances of common stock or securities convertible or exchangeable into common stock, which provision resulted in derivative liability treatment under ASC 480. The warrants are recorded at fair value using the Black-Scholes option pricing model and marked-to-market at each reporting period, with the changes in the fair value recorded in the consolidated statement of operations and comprehensive income (loss).

During the year ended June 30, 2017 and 2016 no warrants were issued along with convertible notes.

The fair value of the described embedded derivative on all warrants was valued at $338,873 at June 30, 2017 and $268,611 at June 30, 2016 which was determined using the Black Scholes Model with the following assumptions:

	June 30, 2017	June 30, 2016
Dividend yield:	0%	0%
Volatility	247.5%	229.1 – 275.4%
Risk free rate:	1.89%	0.71 – 1.01%

	Warrants			Weighted	Weighted
	Outstanding			Average	Average
				Exercise	Remaining
				Price	life
Balance, June 30, 2015	27,092		$	100.98	3.79 years
Exercised	(120	)		280.00	-
Issued	-			-	-
Expired	-			-	-
Cancelled	-			-	-
Balance, June 30, 2016	26,972		$	100.20	2.79 years
Exercised	(117	)		212.40	-
Issued	-			-	-
Expired	(550	)		280.00	-
Cancelled	(11,575	)		190.80	-


Balance, June 30, 2017	14,730		$	213.76	2.55 years

The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities as of June 30, 2017 and 2016:

		Derivative
		Liability (warrants)
Balance, June 30, 2015	$	143,375
Initial fair value of warrant derivatives at note issuances		-
Fair value of warrant exercised		(22,476	)
Mark-to-market at June 30, 2016 – warrant liability		147,712
Balance, June 30, 2016	$	268,611
Fair value of warrant cancelled		(111,073	)
Fair value of warrant exercised		(71,595	)
Mark-to-market at June 30, 2017 – warrant liability		252,931
Balance, June 30, 2017	$	338,874

Net loss for the year included in earnings relating to the liabilities held at June 30, 2017	$	252,931

The Company recorded change in fair value of the derivative liability on warrants to market resulting in non-cash, non-operating loss of $252,931 and $147,712 for the year ended June 30, 2017 and 2016, respectively. During the year ended June 30, 2017 and 2016 the Company reclassed the derivative liability on warrants of $71,595 and $22,476, respectively, to additional paid in capital on exercise of warrants.

Lithium Exploration Group, Inc. 10-K